Program Structure
Lee County Human & Veteran Services uses Community Development Block Grant (CDBG) funds to provide substantial support to buyers who need it most. Unlike a flat-fee loan, this program analyzes your specific financial gap.
The Subsidy
- ● Pays up to 50% of the minimum down payment.
- ● Can provide additional subsidy to ensure your housing payment is ≤ 35% of income.
- ● Absolute Cap: $75,000
The Terms
- ● 0% Interest second mortgage.
- ● No monthly payments.
- ● Forgiven over 5 years (20% per year).
Important: Buyer Contribution
You cannot use these funds for closing costs. You must provide the other 50% of the down payment PLUS your own closing costs.
Funds can come from savings, gifts, or seller credits, but absolutely NO cash back is allowed at closing.
The "Deal Killers" (Strict Eligibility)
Location Rules
This is the most common reason for denial. The home must be in Unincorporated Lee County.
Property Restrictions
- ✗ No Pools (In-ground pools are an immediate disqualifier).
- ✗ No Mother-in-Law Units (Attached or detached).
- ✗ No Mobile/Manufactured Homes.
- ✓ Single-Family, Condo, or PUD only.
- ✓ Max Price: $380,000.
Strict DTI Limits
Lee County enforces hard "debt-to-income" caps with no exceptions:
- Front-End (Housing): Max 35%
- Back-End (Total Debt): Max 45%
Occupancy Status
The home must be owner-occupied or vacant at the time of contract.
Disqualifier: You cannot buy a home that is currently tenant-occupied (unless you are the tenant purchasing it).
Income Limits (Effective May 1, 2024)
Warning: This program calculates income based on the entire household (not just the borrower). All assets from all members are considered.
| Household Size | Max Income Limit |
|---|---|
| 1 Person | $52,450 |
| 2 Persons | $59,950 |
| 3 Persons | $67,400 |
| 4 Persons | $74,900 |
| 5 Persons | $80,900 |
| 6 Persons | $86,900 |
How Forgiveness Works
This is a "self-amortizing" loan. You do not make payments. Instead, if you stay compliant, the county wipes away debt every year.
What Triggers Repayment?
The remaining balance becomes immediately due if you: Sell, Refinance, Lease/Rent the home, Transfer Title, or Stop occupying it as your primary residence.
Application Workflow
Lender Submission
You cannot apply directly. Your loan officer submits the full file to Lee County HVS.
Education & Inspection
You must complete a HUD-certified education class. The county will perform its own HQS inspection (separate from your private inspection).
County Approval
Review time is typically 4-6 weeks. Funds are limited and reserved on a "first come, first ready" basis.
Before You Make an Offer
Screen every house against this list to avoid heartbreak:
- Is it definitely in Unincorporated Lee County? (Check tax district)
- Is it free of any in-ground pool?
- Is it free of mother-in-law units/guest houses?
- Is the purchase price under $380,000?
- Is your calculated housing payment ≤ 35% of your gross income?